On one cheap Linode VPS instance I already have 5 websites hosted, plus a personal email server, plus several private git repositories, all for ~ $20 per month. I get my domains from other services, like namecheap.com; and good/cheap hosting for PHP stuff (and even Rails) can be found on DreamHost.com.

There really isn't any reason for anybody to use GoDaddy anymore, unless you're hunting for their coupons, but in this instance you really get what you pay for.